Here's Why Capital One Stock Is Getting Crushed by Tariffs
The stock market was having its worst day in several years on Thursday in the wake of President Trump's global tariff announcement. In a nutshell, the tariff rates were largely far higher than expected and applied to more countries as well. The resulting concerns about their macroeconomic impact sent the S&P 500 down by more than 4% as of 2:30 p.m. ET.Some stocks were faring much worse than the overall stock market, and Capital One Financial (NYSE: COF) is certainly in this category. Shares plunged by about 9% on the tariff news, and there was a good reason for it.Banks' financial states are highly dependent on the strength of the U.S. economy. In order to keep their lending businesses growing and borrowers' loan default rates low, they need consumer confidence to remain high and unemployment to remain low.Continue reading
The stock market was having its worst day in several years on Thursday in the wake of President Trump's global tariff announcement. In a nutshell, the tariff rates were largely far higher than expected and applied to more countries as well. The resulting concerns about their macroeconomic impact sent the S&P 500 down by more than 4% as of 2:30 p.m. ET.
Some stocks were faring much worse than the overall stock market, and Capital One Financial (NYSE: COF) is certainly in this category. Shares plunged by about 9% on the tariff news, and there was a good reason for it.
Banks' financial states are highly dependent on the strength of the U.S. economy. In order to keep their lending businesses growing and borrowers' loan default rates low, they need consumer confidence to remain high and unemployment to remain low.
